1. Cash Flow - series of payments/receipts over a time period.
1. Example (imagine a timeline): Year 0 = -$3, Year 1 = $1, Year 2 = $1, Year 3 = $3
1. ERP (Enterprise Resource Planning) Tools
1. functions of a business
1. MRP (Material Resource Planning) Tools
1. (wikipedia)is a production planning and inventory control system used to manage manufacturing processes
2. (wikipedia)Most MRP systems are software-based, while it is possible to conduct MRP by hand as well.
1. Business Processes Management
1. aligning all aspects of an organization with the wants and needs of clients
1. Customer Relationship Management
1. Way of managing companies interactions with customers
2. Uses technology to organize, automate, and synchronize business processes.
1. Decision Support
1. Knowledge based information system that supports decision making in businesses
2. Serves management, operations, and planning levels of an organization to help make decisions
1. Electronic Commerce
1. Buying and selling of products through electronic systems (Internet and other computer systems)
2. Also includes entire online process of developing, marketing, selling, delivering etc of goods
1. Database Management Systems
1. Manages multiple databases holding massive amount of data
2. Modularity and Layering
1. Modularity measures the strength of division of a network into modules (also called groups, clusters or communities).
1. quote from email "too geeky? I debated leaving this one out, finally left it in because it is part of the modeling that
goes into architecting an application"
1. System Integration
1. the process of linking together different computing systems and software applications physically or functionally, to
act as a coordinated whole.
1. User Interfaces
1. The systems by which humans interact with machines/software.
What is it? Net Present Value (NPV) or net present worth (NPW) of a time series of cash flows, both incoming and
outgoing, is defined as the sum of the present values (PV’s) of the individual cash flows of the same entity.
What is the formula for it?
|note: to calculate ROR set NPV to 0 and solve for i.
as a function of interest rate i
1. as a function of discount factor Î´
2. Rate of Return
1. What is it? Also known as return on investment (ROI), rate of profit or sometimes just return, is the ratio of money
gained or lost (whether realized or unrealized) on an investment relative to the amount of money invested. The amount
of money gained or lost may be referred to as interest, profit/loss, gain/loss, or net income/loss. The money invested
may be referred to as the asset, capital, principal, or the cost basis of the investment. ROI is usually expressed as a
2. How do you compute it? By setting NPV to 0 and solving for i (interest rate) by using the quadratic equation after